This paper proposes a unified framework to analyse the theoretical properties of forecast combination. The proposed framework not only is useful for deriving all existing results with ease but also provides important insights into two unresolved puzzles of forecast combination. Specifically,...

Arbitrage ensures that covered interest parity holds. The condition is central to price foreign exchange forwards and interbank lending rates, and reflects the efficient functioning of markets. Normally, deviations from arbitrage, if any, last seconds and reach a few basis points. After the...

Cross-border payments can be slow, expensive, and risky. They are intermediated by counterparties in different jurisdictions which rely on costly trusted relationships to offset the lack of a common settlement asset as well as common rules and governance. In this paper, we present a vision for a...